STOCK MARKET WATCH -- 7 June 2012

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30. Stocks Shoot Up After Shock Chinese Rate Cut -- And This One Is A Big Deal

http://www.businessinsider.com/china-cuts-benchmark-interest-rates-by-25-basis-points-2012-6

China cut benchmark interest rates by 25 basis points.
You hear a lot about Chinese rate cuts, but this is a different one.
Most rate cuts are cuts to the reserve requirement ratio, which is a modest move.
This time it's the first straight up rate cut since 2008.
Futures are ripping higher on the news...
But this is a sign that growth is not happening at the pace that Beijing is looking for.
It will also let banks offer a 20% discount from the benchmark rate.
The news came out right at 7:00 AM ET, right when the Bank of England made its rate announcement. It did nothing.
The PBOC move continues the theme for the week: Central bank activity. The big show is later today when Bernanke speaks on the hill.


Read more: http://www.businessinsider.com/china-cuts-benchmark-interest-rates-by-25-basis-points-2012-6#ixzz1x6e0M400